Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Assets And Liabilities Accounted For At Fair Value On A Recurring Basis

The following tables present assets and liabilities accounted for at fair value on a recurring basis as of September 30, 2012 and December 31, 2011 by fair value hierarchy level.

	September 30, 2012
(In millions)	Level 1			Level 2		Level 3		Collateral		Total
Commodity derivative instruments, assets	$	99		$	—	$	—	$	73	$	172
Other assets		2			—		—		—		2
Total assets at fair value	$	101		$	—	$	—	$	73	$	174
Commodity derivative instruments, liabilities	$	(75	)	$	—	$	—	$	—	$	(75	)

	December 31, 2011
(In millions)	Level 1			Level 2			Level 3		Collateral		Total
Commodity derivative instruments, assets	$	26		$	1		$	—	$	107	$	134
Interest rate derivative instruments, assets		—			19			—		—		19
Other assets		2			—			—		—		2
Total assets at fair value	$	28		$	20		$	—	$	107	$	155
Commodity derivative instruments, liabilities	$	(45	)	$	(1	)	$	—	$	—	$	(46	)

Reconciliation Of Net Beginning And Ending Balances Recorded For Net Assets And Liabilities Classified As Level 3

The following is a reconciliation of the net beginning and ending balances recorded for net assets and liabilities classified as Level 3 in the fair value hierarchy.

	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)	2012		2011			2012			2011
Beginning balance	$	—	$	(2	)	$	—		$	2,402
Total realized and unrealized losses included in net income		—		—			(2	)		—
Purchases of PFD Preferred Stock(a)		—		—			—			10,326
Redemptions of PFD Preferred Stock(a)		—		—			—			(12,730	)
Settlements of derivative instruments		—		1			2			1
Ending balance	$	—	$	(1	)	$	—		$	(1	)

^(a) For information on PFD Preferred Stock, see Note 3. The fair value of our PFD Preferred Stock investment was measured using an income approach since the securities were not publicly traded; therefore, they were classified as Level 3 in the fair value hierarchy.

Assets Measured At Fair Value On A Nonrecurring Basis

The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition.

	Nine Months Ended September 30, 2012
(In millions)	Fair Value		Impairment
Other noncurrent assets	$	—	$	14

Financial Instruments At Fair Value, Excluding Derivative Financial Instruments

The following table summarizes financial instruments on the basis of their nature, characteristics and risk at September 30, 2012 and December 31, 2011, excluding the derivative financial instruments reported above.

	September 30, 2012				December 31, 2011
(In millions)	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial assets:
Investments	$	249	$	59	$	289	$	93
Other		30		29		31		30
Total financial assets	$	279	$	88	$	320	$	123
Financial liabilities:
Long-term debt(a)	$	3,489	$	3,007	$	3,203	$	3,008
Deferred credits and other liabilities		24		24		21		21
Total financial liabilities	$	3,513	$	3,031	$	3,224	$	3,029

^(a)  Excludes capital leases